This paper systematically compares and evaluates the reforms of private pensions systems in Argentina, Chile, Bolivia, and Hungary due to initial failures in design and performance after its implementation. The document presents advantages and flaws of the structural reforms and private pension systems before the re-reform and analyses legal features and socio-economic effects of the re-reforms....
This policy paper: (i) examines IMF government spending projections for 181 countries, identifying two main phases: fiscal expansion (2008-2009) and fiscal consolidation (2010 onwards); (ii) presents the main adjustment measures considered since 2010 and their adverse socio-economic impacts in both high income and developing countries; (iii) analyses divergent trends in social protection across...
We propose a method for projecting pension benefits, deriving from DC pension plans and other funded products, at retirement. Projections highlight how the current choice of asset allocation impacts on future potential retirement outcomes. The latter are compared with a money-back benchmark so as to clarify the trade-off between risk and return. After the initial projections, the pension plan...
As part of the pension reform recently approved in Chile, the government introduced a centralized auction mechanism to provide the Disability and Survivors (D&S) Insurance that covers recent contributors among the more than 8 million participants in the mandatory private pension system. This paper is intended as a case study presenting the main distortions found in the decentralized operation of...
Regulation in countries that have adopted defined contribution (DC) pension systems based on savings accounts typically includes minimum return guarantees (MRG) provisions to limit the risk of financial downturns. This paper studies the consequences of this regulation over asset allocation within a standard model of dynamic portfolio selection, where managers act strategically while making their...
Este artículo analiza el sistema de multifondos para el caso de Chile, describiendo su evolución desde su creación, en lo que respecta a inversiones, la elección de tipo de fondo por parte de los afiliados, y su composición por tramos de edad. Se describen los aspectos más relevantes de la normativa vigente y se analiza el desempeño de los multifondos durante la crisis financiera. Respecto a este...
In 1981 Chile was the first country in the world to privitise its pension system moving from a traditional unfunded pay-as-you-go scheme (PAYG), where benefits are defined ex-ante by a final salary formula, to a Defined Contributions (DC) scheme where each individual's benefit depends entirely on his own pension savings. Individuals in the labour market at the time of the reform were given the...
Chile went through a major pension system reform in 1981, replacing the state managed pay-as-you-go system by a privately-managed fully funded scheme. The reform implied a rather important increase in the net present value of expected pension wealth for most of those who opted-out to the new arrangement. We investigate the extent to which households substitute this increase by decreasing...
El Seguro de Cesantía (SC) junto con proteger el ingreso de los trabajadores dependientes ante eventos de desempleo, tiene el objetivo complementario de incentivar y apoyar la búsqueda de un nuevo empleo. El año 2007, se dio inicio a un programa de becas de capacitación para los beneficiarios del Fondo de Cesantía Solidario (FCS). Utilizando datos administrativos del SC y de las capacitaciones...
Este trabajo hace un análisis de las características que definen la elección individual de modalidad de pensión para los jubilados en el sistema previsional chileno. Se utilizan datos de la Encuesta de Protección Social 2009 y datos administrativos de la Superintendencia de Pensiones para generar una muestra representativa de jubilados con sus características individuales. En particular, se evalúa...
